$ and discipline are 2 very difficult things to go together, for anyone.
I'm getting my last refund this year as I am having less withdrawn so it's not in uncle sam's pocket for free. I can easily see both sides of that one.
Maybe my unwanted 2 cents would be - whether you have a refund or save each month - if you put the $ in either case into something smart like land or mutual funds or a good investment - you'll be in great shape years down the road. Mine is going 100% towards land, surprise!
I'm getting my last refund this year as I am having less withdrawn so it's not in uncle sam's pocket for free. I can easily see both sides of that one.
Maybe my unwanted 2 cents would be - whether you have a refund or save each month - if you put the $ in either case into something smart like land or mutual funds or a good investment - you'll be in great shape years down the road. Mine is going 100% towards land, surprise!
Monsterbuck
Active Member
What interest earning account paid double digit interest in 2013???
Thinkin Rut
PMA Member
westpointhunter
PMA Member
Please explain the big world to me.
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I simply meant that its best to not give the Government a negative interest loan as others suggested too. Why not let that same money work for you all year. A few options would be debentures, a REIT fund, an indexed fund, stock or bond funds. The point is, if you start doing that, you are also less likely to go blow it in the spring. My investments averaged over 20% last year. The Government will pay you ZERO. You will get statements that show you the growth and see how fast that money can build up for things like hunting ground or retirement. You can still spend some of it on something fun, but likely you will leave some also, and that will make your life much easier some day.
Not picking on anyone, just passing on some advice I got when I was 22 years old and starting my first job. That advice got me a couple of farms and a great start on an early retirement. Who here doesn't want that? Take it for what it is, just another opinion.
Not picking on anyone, just passing on some advice I got when I was 22 years old and starting my first job. That advice got me a couple of farms and a great start on an early retirement. Who here doesn't want that? Take it for what it is, just another opinion.
Hardwood11
It is going to be a good fall!
$ and discipline are 2 very difficult things to go together, for anyone.
I'm getting my last refund this year as I am having less withdrawn so it's not in uncle sam's pocket for free. I can easily see both sides of that one.
Maybe my unwanted 2 cents would be - whether you have a refund or save each month - if you put the $ in either case into something smart like land or mutual funds or a good investment - you'll be in great shape years down the road. Mine is going 100% towards land, surprise!
Tax deductions on land is a major reason we own land!!
If anyone considers a land purchase, taxes on interest/property taxes/and depreciation on buildings as well as other deductions can be a real plus!!
nannyslayer
New Member
New cut collars and cut vest for my dogs and a gps tracking system.
Thinkin Rut
PMA Member
I agree with this 100% but these are not interest earning accounts.
Most people who use their tax return as a forced way to save usually have the money ear marked for a necessity or a known want...it's mad money. It is short term money and with short term money you don't want the risk. If this money wasn't held out for taxes it would probably go into their checking account and consumed in their everyday lives. This would not be agreed to by the Dave Ramseys of the world but is a fact.
Thinkin Rut
PMA Member
For most of these deductions, don't your land need to be a "working farm"? What qualifies your land as a "working farm" and is this some vast grey area?
I think the farm has to have a source of income.
Thinkin Rut
PMA Member
So if a 100 acre Rec farm has 10 acres of CRP it qualifies? I'm not sure about that.
Hardwood11
It is going to be a good fall!
It always has for me? My accountant is sharp on this!
Income yes...crop/pasture/CRP or timber
Actually crp is the one thing that allows you to be a "farmer" and file schedule f. Crp is clearly identified as meeting criteria to file as a farm. If your place is pure cash rent you are not suppose to file schedule f but most do. Its kind of same way with land owner tags, a guy that owns 100 acres of timber is not suppose to even get a landowner tag but most still do.
Ask your CPA, but I would guess the answer is yes. I think you would just file a schedule F on your tax return to show the income and then you could deduct expenses for the farm. Including depreciation for equipment and buildings that qualify.
Daver
PMA Member
Huh? I have never heard of anything like that. What information can you share about this?
Land Owner tags, right off the DNR website:
Qualifying Land
Land must be used for agricultural purposes and gain or enrolled in a set aside program to be eligible for Landowner-Tenant licenses. A landowner with two or more acres who is not receiving financial gain from the land is not eligible for Landowner-Tenant licenses. Having a garden, mowing the lawn or planting landscaping trees does not qualify.
"Farm unit / Qualifying parcel” means all parcels of land that are in tracts of 2 or more contiguous acres that are operated as a unit for agricultural purposes and are under the lawful control of the landowner or tenant.
I guess this could be your out, depends on how you define specialty crops.
D. Raises specialty crops on the farm unit including, but not limited to, orchards, nurseries or trees that do not always produce annual income but require annual operating decisions about maintenance or improvement.
Qualifying Land
Land must be used for agricultural purposes and gain or enrolled in a set aside program to be eligible for Landowner-Tenant licenses. A landowner with two or more acres who is not receiving financial gain from the land is not eligible for Landowner-Tenant licenses. Having a garden, mowing the lawn or planting landscaping trees does not qualify.
"Farm unit / Qualifying parcel” means all parcels of land that are in tracts of 2 or more contiguous acres that are operated as a unit for agricultural purposes and are under the lawful control of the landowner or tenant.
I guess this could be your out, depends on how you define specialty crops.
D. Raises specialty crops on the farm unit including, but not limited to, orchards, nurseries or trees that do not always produce annual income but require annual operating decisions about maintenance or improvement.
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From the IRS:
Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a long-term contract with the USDA, agreeing to convert to a less intensive use of that cropland. You must include the annual rental payments and any one-time incentive payment you receive under the program on Schedule F, lines 4a and 4b. Cost-share payments you receive may qualify for the cost-sharing exclusion. See Cost-Sharing Exclusion (Improvements) , later. CRP payments are reported to you on Form 1099-G.
Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a long-term contract with the USDA, agreeing to convert to a less intensive use of that cropland. You must include the annual rental payments and any one-time incentive payment you receive under the program on Schedule F, lines 4a and 4b. Cost-share payments you receive may qualify for the cost-sharing exclusion. See Cost-Sharing Exclusion (Improvements) , later. CRP payments are reported to you on Form 1099-G.
Daver
PMA Member
Interesting...I am sure I had to have read that before, as I am registered as a landowner in Iowa, but that really didn't stick with me I guess. I also see what you are saying above...even if you did nothing but make decisions about whether to have a timber harvest, do TSI, cut some firewood, etc, on your completely timbered land I think you could still qualify the way that is written.
Any land owner that I know, and can think of right now, would appear to meet the criteria though, as that is pretty broad language.